Daily Tax Update - January 4, 2017: IRS Issues Guidance on Information Reporting Safe Harbor

IRS Issues Guidance on Information Reporting Safe Harbor:  Today, the Treasury Department and the IRS issued Notice 2017-09 providing guidance regarding the de minimis error safe harbor for information reporting penalties under sections 6721 and 6722.  Under the safe harbor, an error on an information return or payee statement is not required to be corrected, and no penalty is imposed, if the error relates to an incorrect dollar amount and the error differs from the correct amount by no more than $100.  This notice clarifies that the de minimis error safe harbor does not apply in the case of an intentional error or if a payor fails to file an information return or furnish a payee statement.  The Treasury Department and the IRS intend to issue regulations on these provisions.